11 Comments

How do you explain people that have been in their home for 20 years-both employeed and loosing their house to foreclosure? Do you think the boat, the motorhome and the swimming pool have anything to do with it? Homes are not piggy banks. They are the best hedge against inflation. People who chose to simply walk on underwater loans did more to hurt their neighbors than wall street-now that everybody is renting, there is more demand for rental property-pushing rents up. Soon inflation will push all those renters out wishing they where still in the home they chose to walk from. Housing is a 30 year deal-not a 3 year deal.

Actually they did. It was well intentioned at the time but there was substantial pressure put on the banks to lend to lower-income borrowers which became the bulk of the sub-prime loans. That includes the 1992 Housing and Community Development Act, threats of losing charters and access to government mortgage purchase programs, suits to force them to do so by the government and groups like ACORN, etc., etc.

Why should he have to document the HCDA? Its been law for 20 years. To many youngsters around here have no clue that the entire mortgage debacle started with the passage of the HCDA. Its even on wikipedia, look it up.